Trading high interest for cheap channels won't work for everyone. Precision pricing, and frequent re-pricing, of relationship accounts using the intelligence gained from deposit and customer optimization tools is another strategy that many successful banks are embracing, says Dan Gellar of Market Rate Insight. "More banks are utilizing statistical models and tools to arrive at the optimal price they can offer customers and still maintain cost of funds," he says.

At their most basic, pricing and profitability optimization is understanding at a granular, segmented level, what the price elasticity and demand is for different types of deposit products in different parts of the market, says Frank Rohde, vp of product development and CMO for San Bruno, CA-based vendor Nomis Solutions.

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